In defence of short-sellers: Key to a balanced and functional market

Successful traders who use WSB and publicly announce their positions along with the rationale have inspired millions of followers who enthusiastically mirror their trades

The Viceroy-Vedanta affair that is currently front page news has similarities with the Hindenburg–Adani affair. In both cases, an overseas entity went short on a well-known group, and released reports explaining why. I’m not here to discuss the merits of the reports. It’s up to traders who wish to take exposures (long or short) to make their own judgements.

 

There are other interesting points one can make. The strategy of taking a position and then publicly revealing the position, and talking up the rationale is not new. Long investors have been doing this for over a century. In the early